§ 46-12-24.2. Rhode Island Clean Water Act environmental trust fund. (a) Findings. (1) Protecting the ground and surface water of the state from pollution is vital to the health and general welfare of the citizens of the state;

(2) Construction, rehabilitation, and maintenance of modern and efficient waste water treatment systems and facilities is essential to protecting and improving the state's water quality and to the state's development;

(3) Significant nonpoint sources of pollution and combinations of sewerage and storm water runoff collection systems exist in the state and contribute to pollution;

(4) Certain areas of the state continue to be served by septic systems even though those areas should be served by interceptors to carry pollutants to waste water treatment facilities;

(5) Federal funds available to the state in the form of grants pursuant to the federal Clean Water Act, 33 U.S.C. § 1251 et seq., are currently inadequate to permit Rhode Island governmental entities to achieve secondary treatment within a five (5) year period, and the anticipated reduction in federal funds available to the state and its governmental units may make it difficult to achieve the goal of improvement to the state's water quality;

(6) A fund should be established to provide sufficient continuing financial resources so that the state may achieve its water quality goals by providing for loans and grants to governmental entities and others.

(b) Creation of fund. There is hereby created the Rhode Island Clean Water Act environmental trust fund (hereinafter referred to as "the fund" or "the Trust Fund") into which shall be deposited with the general treasurer of the state of Rhode Island:

(1) Proceeds from the sale of bonds and notes, including any premiums and accrued interest, issued under or advances pursuant to, article III of the Public Laws 1987, chapter 289;

(2) State appropriations;

(3) Repayment of loans from entities which have been qualified to receive loans by the director;

(4) Federal grants and loans; and

(5) Unless otherwise specified by the director, all other money, including gifts, bequests, administrative, and civil and criminal penalties received in connection with the enforcement of this chapter, or other funds from any public or private sources which money are intended to improve water quality.

(c) Use of fund; purposes. All money in the fund shall be expended in accordance with the general laws of the state of Rhode Island, and are hereby specifically restricted to providing grants and loans, and required state share or related expenses for the Narragansett Bay study, consistent with the provisions of this chapter and with the provisions of the Clean Water Act, 33 U.S.C. § 1251 et seq., as it may be amended from time to time. Proceeds from the sale of bonds and notes deposited into the fund shall be expended in accordance with the proposition approved by the people. Any proceeds from the sale of bonds or notes approved by the people after 1988, may also be expended for the Narragansett Bay study to develop and implement a conservation and management plan, and by the department of environmental management to implement a management program for the control of water pollution from nonpoint sources, including all necessary administrative costs. With respect to the fund, the state controller is authorized and directed to draw his or her orders upon the general treasurer for the payment out of the fund of such sum or sums as may be required from time to time upon receipt by him or her of properly authenticated vouchers approved by the director (as hereinafter defined) or his or her delegate. Expenses of issue of the bonds and notes issued under article III of Public Laws 1987, chapter 289, may be paid from the fund.

(d) Administration of fund. All money in the fund shall be expended under the direction and supervision of the director and the director or the director's delegate, as the case may be, shall be vested with all power and authority necessary and incidental to the purposes of this chapter, and these powers and authorities granted to the director or the director's delegate, as the case may be, shall be in addition to and not in substitution for all other power provided by law.

(e) Investment of money in fund. All money in the fund not immediately required for payment pursuant to the provisions of this section may be invested by the state investment commission as established by chapter 10 of title 35; provided, however, that the securities in which the fund is invested shall remain part of the fund until exchanged for other securities, and provided, further, that the income from any investments shall remain as part of the fund, unless prohibited by applicable federal law.

(f) Advances from general fund. The general treasurer is authorized from time to time with the approval of the governor and the director of the department of administration in anticipation of the receipts of funds enumerated in subsection (b) to advance sums to the fund for the purposes specified in subsection (c), any funds of the state not specifically held for any particular purposes; provided, however, that any advances made to the fund shall be returned to the general fund forthwith upon receipt by the fund of monies to the extent of the advances.

(g) Termination of fund. Upon a finding by the director that the fund is no longer needed for its purposes, the fund shall be terminated and shall be audited. Ninety (90) days following the final audit of the fund by the state auditor general, the fund shall cease to exist and any unobligated money in the fund shall be transferred to the state's general fund and shall be applied to the payment of debt service charges of the state.

History of Section. (P.L. 1986, ch. 289, art. 11, § 1; P.L. 1988, ch. 84, § 114; P.L. 1988, ch. 238, art. 1, § 1.)